Rapid expansion of solar photovoltaic (PV) installation capacities coupled with increasing demand for renewable power sources has been responsible for solar panels market growth. Growing awareness for energy security and self-sufficiency along with favorable government legislations is expected to fuel solar panels market growth over the forecast period. Unilateral obligation of countries such as Germany, Italy, France, UK, U.S., China, Japan and India to the Kyoto Protocol, designated to reduce GHG emissions, is also expected to promote market growth. Government initiatives such as subsidies on PV systems and feed-in-tariffs coupled with capacity expansions in Asia Pacific and the U.S. are expected to drive solar panels demand over the next six years. This is further supported by soaring electricity tariff rates and declining manufacturing costs of PV systems on account of innovative technologies.
On the basis of technology, solar panels may be segmented into crystalline silicon systems and thin film cells. Crystalline silicon solar PV systems were the dominant technology in global solar panels market in 2013. Rise in Chinese manufacturers and technological advancements in the sector have been major factor for high crystalline silicon PV panel demand. Increasing requirements for high efficiency solar PV systems has led to the development of thin-film cells as they employ cadmium or glass substrates and have higher solar conversion efficiency at relatively lower costs as compared to their crystalline silicon counterparts. Improved efficiency along with other advantages over conventional solar panels are estimated to fuel market demand over the forecast period. On the basis of mounting systems, the market may be segmented into ground mounted, roof mounted, solar trackers and fixed racks solar PV systems. Increasing acreages of solar power plants and increasing off-grid installations of PV systems for commercial & residential purposes is expected to have a positive impact on market growth. Growing demand for solar driven vehicles and electrical appliances is also expected to drive market growth over the forecast period.